Competitive Landscape of Online Travel

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Online Travel Competitive Landscape

AmericanAirlines.com, Priceline.com, and Kayak.com offer many different services in their online marketplace. American Airlines gives the consumer the option to book their flights directly through their website along with other services that they will need during their trip. This encourages the consumer to develop brand loyalty while allowing them to reap the benefits through competitive pricing. When booking directly through American Airlines, consumers are able to earn points towards future reservations. They are also able to transfer their points to their hotel or car rental reservation. When booking alongside a flight, AmericanAirlines.com guarantees the lowest car rental price by using the price match guarantee. The company will match or credit the difference if the consumer finds a lower price within 24 hours of the booking. Consumers are assured that they will always get the best deal when bundling their flight with their car rental. The site also permits the user to bundle their flight with a hotels where they are allowed to use the points that they have earned through American Airlines. American Airlines total operating revenues for 2011 was $23,957,000 and $22,150,000for 2010. The increase in 2011 could be resulting from Chapter 11 bankruptcy that was filed on November 29, 2011 which allowed for restructuring and reorganizing of the company. The company also increased flights to foreign countries which attribute to the increase in operating revenues. An increase in marketing also increased revenues. Consolidated passenger revenues and cargo revenues are also credited to the increase. Total operating expenses for the year ended December 31, 2011 amounted to $25,127,000. This is a $3,128,000 jump from expenses that were incurred in 2010. Aircraft rentals, commissions, booking fees, and credit card expenses had the most significant increase from 2010 to 2011. Stock price was report at $5.80 for 2011 and $7.70 for...
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